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Q1 2021
LOWER MANHATTAN REAL ESTATE MARKET REPORT
Lower Manhattan Real Estate Market Report | Q1 2021
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Q1 2021
LOWER MANHATTAN REAL ESTATE MARKET REPORT Leasing Activity Improves, But Still Lagging The first quarter saw Lower Manhattan record 440,000 sq. ft. of office leasing according to CBRE. This was up from the record low seen in the previous quarter, but 60% lower than the five-year quarterly leasing average. The past four quarters combined still only amounts to what was seen in individual quarterly leasing in 2019. Real estate decision-making continues to be put on hold and is further influenced by office workers’ present slow and limited return to the physical office. A recent survey by the Partnership for New York City estimates that only about 10% of workers across the city’s business districts were back in the office as of March 2021.
Lower Manhattan Annual New Leasing Activity, 2015-2021 Source: CBRE
Increased vaccination rates are an encouraging sign and companies are beginning to plan for employees to return to the office, as capacity restrictions continue to be relaxed. By late April, more than half of all city adult residents have been partially vaccinated. Mayor de Blasio announced the full reopening of New York City by July 1 and that city workers who have been working remotely since the start of the pandemic (totalling 80,000 workers across New York City) will begin returning to the office in early May. This is viewed as an important signal encouraging other companies to follow suit. The Partnership for New York City also estimates about half of the employees across the city will be returning by September 2021. Midtown Manhattan saw 1.92 million sq. ft. of leasing activity in the first quarter, up 34% from the previous quarter; however, the market is 50% behind the fiveyear quarterly average. Midtown South leasing activity more than doubled to 519,000 sq. ft. over the previous quarter; however leasing remains 56% below the five-year quarterly average.
Lower Manhattan Real Estate Market Report | Q1 2021
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Variety of Industries Commit to Lower Manhattan Most signed leases in Lower Manhattan were primarily renewals or moves within the neighborhood. IPC Systems, a fintech company, renewed 26,652 sq. ft. at One State Street Plaza. Two law firms, Sheeley LLP and Pitta & Gilbin, signed 19,672 sq. ft. and 17,749 sq. ft. renewals at 100 Wall Street and 120 Broadway, respectively. Radancy, a human resources agency, moved from 125 Broad Street to 15,623 sq. ft. at One Battery Park Plaza. Lactalis, the US subsidiary of the French dairy company, moved from 77 Water Street to 14,752 sq. ft. at 80 Pine Street. Relocations into the district — typically a large driver of leasing in Lower Manhattan — ticked up from the previous quarter. The Consulate General of Morocco committed to 18,294 sq. ft. at 55 Broadway and Medical Knowledge Group signed for 12,063 sq. ft. at One World Trade Center — both relocating from Midtown. Golden Goose, a luxury Italian shoe designer, signed a 13,566-sq.-ft. deal at 120 Broadway, relocating from Midtown South.
449,000
Square Feet Of New Leasing In The First Quarter — 61% Below The Five-Year Quarterly Average. Jay Suites, a flexible office space operator, signed the largest lease of the quarter — 45,361 sq. ft. at 40 Wall Street. Jay Suites also operates a space at 30 Broad Street. Leasing by this sector has come to a halt since the pandemic began, as their business models have been turned upside down. In the past few months, WeWork closed its 25 Broadway location and Knotel came under new ownership after its bankruptcy.
MAJOR PROJECTS UPDATE
Lower Manhattan Top Leases, Q1 2021 Source: Downtown Alliance, CBRE, JLL, Colliers, Newmark Knight Frank, CoStar
Tenant Name Location
1
2
3
4 5
6
7
8
Jay Suites
40 Wall Street
SF Leased Transaction
Sector
Professional 45,361 Services, Flex New LM Location Office Space
IPC Systems
26,652 One State Street Plaza Renewal
TAMI, Information
Sheeley LLP
Professional Services, Law
100 Wall Street
19,672 Renewal
Consulate General 18,294 of Morocco Relocation
Government
55 Broadway
Pitta & Giblin LLP
17,749 Renewal
Professional Services, Law
Radancy
15,623 Move Within LM
Professional Services, Other
Lactalis USA 80 Pine Street
14,752 Move Within LM
Other, Manufacturing
Hannum Feretic Prendergast & Merlino
14,674 Renewal
Professional Services, Law
Golden Goose
13,994 Relocation
Retail Trade
COWI
12,764 Move Within LM
Professional Services, Engineering
12,063 Relocation
Professional Services, Consulting
Chartwell Law
11,741 Renewal
Professional Services, Law
Assurant
10,986 Renewal
FIRE
120 Broadway
1 Battery Park Plaza
55 Broadway
9
10
120 Broadway
88 Pine Street
Medical Knowlege 11 Group One World Trade Center
12
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Lower Manhattan Real Estate Market Report | Q1 2021
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1 Battery Park Plaza
55 Broadway
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Vacancy Rates Rise Across Manhattan
Overall Vacancy Rates by Submarket
According to Cushman & Wakefield, Lower Manhattan’s overall vacancy rate rose from 10.8% to 14.4% over the past year as the pandemic created havoc in the market. Almost 600,000 sq. ft. of direct and sublet spaces was made available in the past quarter. Over the past year, Class A vacancy grew by nearly five percentage points from 10.8% in the first quarter of 2020 to 15.5% by the end of 2020. The Class B vacancy rate rose to 12.8%.
Source: Cushman & Wakefield
Midtown’s overall vacancy rate increased to 16.8%, up year-over-year from 12.3% and the highest rate since 1993. Class A office vacancy in Midtown jumped to 15.9% as 1.8 million sq. ft. became available; class B office vacancy also increased dramatically to 19.5%, up 6.6 percentage points from Q1 2020. Midtown South’s overall vacancy had the most dramatic increase since the pandemic began, rising 8.5 percentage points from 8.5% to 17%, driven by large increases in Madison/Union Square and Hudson Square. Class A office vacancies in Midtown South continued to increase to 14.9%, while class B office vacancy hit 19.5%, a nearly 10 percentage point increase year-over-year.
Lower Manhattan Real Estate Market Report | Q1 2021
Class A Vacancy Rates by Submarket Source: Cushman & Wakefield
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Average Office Asking Rents Hold Steady
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Overall Asking Rents by Submarket Source: Cushman & Wakefield
According to Cushman & Wakefield, Lower Manhattan’s overall average asking rent held steady over the past quarter, but was down 2% year-over-year, to $60.90 per sq. ft. despite the nearly 600,000 sq. ft. of space added to the market. Class A asking rents fell by 4.7%, to $63.64 per sq. ft., over the past year. Class B average asking rents rose slightly to $58.07 due to a building renovation in Tribeca. Asking rents hit high water marks in late 2018, where average overall rents were nearly $64 and average class A rents were almost $68. Office rents in Midtown didn’t fluctuate as heavily over the quarter and year. Overall rents stood at $76.40, while Class A asking rents were $83.07. Rents in Midtown South have been much more volatile over the past couple of years. Overall asking rents have dropped nearly 8% over the past year, to $70.72 per sq. ft.. Class A rents in Midtown South dropped 7% to $86.81 year-over-year. 2019 saw rents hit record highs; now overall and class A rents have both decreased by around $12 per sq. ft.. This is the fourth consecutive quarter where overall rents in Midtown South are cheaper than Midtown.
Class A Asking Rents by Submarket Source: Cushman & Wakefield
Anemic leasing activity and heavy volume of direct and sublease spaces being put on the market has strained all Manhattan submarkets. Class A vacancies are now all within one percentage point across Lower Manhattan, Midtown South and Midtown. Average rental rates for sublet space in Lower Manhattan stands at $54.70, while Midtown and Midtown South at $60.78 and $61.55, respectively. Favorable pricing for sublet office spaces and the wide variety of office types that are available are beginning to erode Lower Manhattan’s competitive cost advantage compared to other Manhattan submarkets.
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First Quarter 2021 Property Sales Office Condo Sales In January, the Union of Orthodox Jewish Congregations of America purchased two commercial condo units totalling 48,824 sq. ft. at 30 Rector Street for $25 million from Philips International Holding Corp. Retail Condo Sales K Property Group Funds closed on the purchase of a 3,086 sq. ft. retail condo at 102 Chambers Street for $12 million from Cape Advisors. The space is occupied by Spectrum cable, which opened in late 2020. The retail condo is at the base of the new 23-condo unit building, known as 30 Warren Street, which opened late last year. Residential Building Sales In early 2021, Broadway Management Co., the former owners of J&R Music World located at 15 Park Row, sold the building to investor Atlas Capital Group for $141.3 million or $419,000 per unit. The 31-story, 337-rental unit property includes the retail space that once served as home for J&R Music.
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New York City Reopening NYC Timeline
Businesses Allowed to Reopen*
6/8/2020
construction, non-essential businesses for pickup or curbside
6/22/2020 7/6/2020
outdoor dining, salons and barbers, real estate showings, offices, in-store shopping (not malls) spas and nail salons
7/20/2020 low risk outdoor arts and entertainment 8/24/2020 museums at 25% occupancy 9/2/2020
gyms (not individual fitness boutiques) at 33%
9/9/2020
indoor malls
9/30/2020 indoor dining at 25% occupancy 12/11/2020
indoor dining prohibited again due to rising virus cases
Pending Sales Announcement In early February, Fogliano Realty listed a portfolio of two loft-style commercial buildings spanning 10,400 sq. ft. at 112 and 113 South Street for sale for $5.9 million. Both buildings have been vacant since 2005.
2/12/2021
indoor dining recommences at 25% occupancy
Mack Real Estate took control of a portfolio of seven hotels from Hersha Hospitality Group and Cindat USA for $316 million following foreclosure proceedings. Hersha and Cindata acquired the portfolio in 2016, when the seven properties were worth a combined $816.3 million. Among the seven hotels, Mack now controls the 113-room Holiday Inn at 51 Nassau Street and 112-room Holiday Inn Express at 126 Water Street.
3/15/2021
2/26/2021 indoor dining at 35% occupancy 3/5/2021
movie theaters at 25% occupancy wedding receptions and catered events at 50% occupancy, up to 150 people
3/19/2021 indoor dining at 50% occupancy 4/1/2021
domestic travelers no longer need to quarantine
4/2/2021
events, arts & entertainment venues at 33% (or 100 indoors and 200 outdoors)
5/3/2021
indoor bar seating
5/15/2021 offices can increase capacity from 50% to 75% 7/1/2021
full reopening (anticipated)
* This list of businesses allowed to reopen is illustrative, not exhaustive. Please refer to official New York State guidance.
Lower Manhattan Real Estate Market Report | Q1 2021
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RETAIL Impacts On Lower Manhattan’s Retail Market Twenty-six retailers have closed since the beginning of the year, in addition to the 163 closures that occurred last year. Sadly, several businesses, both large and small, announced permanent closures. They include:
Additionally, 25 retailers made plans in the first quarter to open a storefront in Lower Manhattan. Among those who announced during the first quarter:
• Zucker’s Bagels will open soon at 146 Fulton Street; • CVS will replace New York Sports Club at 217 Broadway; and
• I nvicta, Samsonite, Designer Eyes and Dior Cosmetics at Westfield World Trade Center;
• Urbanspace announced it will open a 16-vendor food
• Leonidas Belgian Chocolates and Ray’s Jewelry at
• Duane Reade, Jamba Juice, Häagen-Dazs and
3 Hanover Square; and
• Staples and New York Sports Club at 217 Broadway. Despite the ongoing pandemic, 13 retailers opened in the past few months — 7 of which replaced retailers closed during 2020 — including:
hall at 100 Pearl Street in late 2021;
Sunsations Eyewear will open in Westfield World Trade Center; and
• In the Seaport, Momofuku’s Ssäm Bar replaced Bar Wayō on Pier 17 and a new restaurant by John Eden and Wylie Dufresne will debut in the Fulton Market Building.
• Hydra Studios, a boutique fitness studio, opened at 120 Wall Street;
• P.F. Changs To-Go, a takeout-only version of the
popular Chinese chain, opened at 62 Fulton Street;
• Bluestone Lane, the popular Aussie cafe, replaced Le Pain Quotidien at 2 River Terrace; and
• Adam Lippes, luxury lifestyle boutique, debuted its first store at Brookfield Place.
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HOTELS + TOURISM Impacts On Lower Manhattan’s Tourism Market Prior to the pandemic, Lower Manhattan had enjoyed years of rising tourism, most recently seeing 14 million visitors in 2019, of which 60% were international travelers. However, in 2020 only 2.7 million tourists come to Lower Manhattan, of whom only 13% were international travelers. Over half of tourists to Lower Manhattan in 2020 were New York City and metro area residents, compared to only 10% in 2019. Roughly one third of tourists to the district visited from elsewhere in the United States, similar to before the pandemic.
Lower Manhattan’s Hotel Development The current hotel inventory in Lower Manhattan stands at 7,935 rooms across 36 hotels. Currently, 27 hotels in Lower Manhattan are open to receive guests. Two Sonder hotel properties recently opened this year (Sonder typically partners with residential rental buildings, operating portions of the building as extended stay hotels). The Sonder at 20 Broad Street remains closed.
• Sonder at 2 Washington Street, with 345 rooms.
Sonder partnered with The Moinian Group that is finalizing the conversion of floors 2-14 into residential use. Nyack College occupies the commercial office portion of the building for its New York City campus;
• Sonder at 17 John Street, with 79 rooms. Sonder took over the former Assemblage hotel, which closed last year due to the pandemic.
2.7 MILLION
Visitors In Lower Manhattan In 2020, An 80% Decrease From The 14 Million Visitors Seen In 2019.
1
There are an additional 1,949 hotel rooms across 12 hotels under construction or in development in Lower Manhattan. Over 800 rooms across six hotel developments are anticipated to open later in 2021. They include:
• Residence Inn at 215 Pearl Street (lower floors), with 120 rooms;
• Courtyard at 215 Pearl Street (upper floors), with 200 rooms;
• The Wall Street Hotel at 88 Wall Street, with 181 rooms;
• Hotel Indigo at 120 Water Street, 128 rooms; • The Fidi Hotel at 11 Stone Street, 143 rooms; and • Casa Cipriani at the Battery Maritime Building, 47
rooms. The property also includes a private club and an 800-person Cipriani event space which opened in late 2019.
Occupancy and Average Daily Room Rate Hotel performance metrics continue to struggle due to COVID and are anticipated to underperform for the foreseeable future. However, positive momentum is on the horizon. Hotels that temporarily closed over the winter are reopening and weekend business is picking up. Average hotel occupancy and room rates in Lower Manhattan have often followed similar citywide trends. According to NYC & Company (via CBRE Hotels and STR), hotel occupancy in New York City rose slightly to 43% during the first quarter, after staying in the mid-30% range throughout the second half of 2020. Average daily room rates fell to approximately $127 after hovering in the mid$130 range throughout the second half of 2020.
Audience Research & Analysis
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Foreclosures Hit Hotel Market The drastic reduction in travel seen over the last year created an extremely challenging environment for the hotel industry. Many hotels across New York City were forced to permanently close, file for bankruptcy and reorganize, or face foreclosure. Others temporarily closed their doors. Lower Manhattan properties have faced similar challenges.
• In January, Mack Real Estate took control of a portfolio of
seven hotels from Hersha Hospitality Group and Cindat USA for $316 million following foreclosure proceedings. Hersha and Cindata acquired the portfolio in 2016, when the seven properties were worth a combined $816.3 million. The seven-hotel portfolio includes the 113-room Holiday Inn New York City – Wall Street located 51 Nassau Street and the 112-room Holiday Inn Express New York City – Wall Street located at 126 Water Street.
• The Annaly Commercial Real Estate Group is moving
to foreclose and take possession of the 253-room Andaz Wall Street at 75 Wall Street from the Hakimian Organization.
• In April, the 492-room Holiday Inn Manhattan-
Financial District at 99 Washington Street went into foreclosure after closing temporarily over the winter.
• Also in April, the Vanbarton Group initiated foreclosure
auction proceedings due to an outstanding $36 million loan at The Assemblage, a 79-room hotel at 17 John Street. The Assemblage was developed by the nowbankrupt crowdfunding platform Prodigy Network. The Assemblage permanently closed in June 2020.
• In addition to above, the 217-room W Downtown at 123 Washington Street and the 140-room AKA Wall Street both closed in 2020.
Lower Manhattan Real Estate Market Report | Q1 2021
MAJOR PROJECTS UPDATE
Lower Manhattan Hotel Pipeline Source: Downtown Alliance
Hotel / Address 1
2
3 4
5
• In March, the 134-year-old Down Town Association, a
private social club and 33-room hotel located at 60 Pine Street, filed for Chapter 11 and are looking to reorganize this fall. The Down Town Association sold the property to Great Empire Realty in 2018 for $28.3 million under a sale-and-leaseback agreement.
RESIDENTIAL
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7 8 9 10 11 12
Owner/ Developer
Rooms Open Date
Residence Inn
Lam Group
120 (upper floors)
2021
Courtyard by Marriott
Lam Group
200 (lower floors)
2021
215 Pearl Street
215 Pearl Street
The Fidi Hotel
Premier Emerald LLC
143
2021
Hotel Indigo
Fortuna Realty
128
2021
47
2021
Actium Development
180
2021
Fit Investment Group
173
2022
AC Hotel
Hidrock Realty
230
TBD
TBD Hotel
Solil Mgmt/ Firmdale
70
TBD
Hotel Indigo
10-12 MLane Inc.
190
TBD
TBD Hotel
Hidrock Realty
296
TBD
TBD Hotel
The Moinian Group
172
TBD
11 Stone Street
120 Water Street
Casa Cipriani 10 South Street
The Wall Street Hotel 88 Wall Street
Aloft Hotel
50 Trinity Place
112 Liberty Street
86 Warren Street
8-12 Maiden Lane
140-142 Fulton Street
7 Platt Street
Centaur Properties/ Cipriani
Total Hotels in the Pipeline
12
Total Hotel Rooms in the Pipeline
1,949
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RESIDENTIAL Inventory and Development Lower Manhattan has 33,714 units in 341 residential buildings. There are 3,796 units in 15 buildings under construction or planned for development, with about 57% currently planned as rental units and 43% as condos. Two new buildings received their temporary certificates of occupancy in the first quarter of 2021, adding 334 new condominium units. Final aspects of construction will still continue on these buildings throughout the year. They include:
• 130 William Street: a 66-story, 244-unit condo tower developed by Lightstone. 130 William Street received its temporary certificate of occupancy in February. The site includes a landscaped plaza on William Street and nearly 21,000 sq. ft. of retail space; and
• 77 Greenwich Street: Trinity Place Holdings’ 42-story,
90-unit condo tower. 77 Greenwich Street received its temporary certificate of occupancy in March. The first eight floors of the building will contain the new home for P.S. 150, which will relocate from Tribeca. The project also includes the adaptive reuse of the landmarked Robert and Anne Dickey House, as well as 6,500 sq. ft. of retail space and construction of a new subway entrance for the Rector St R/W station;
In 2021, construction is expected to wrap up on 722 units across two rental buildings and one condominium building:
• 84 William Street: The former 140-room AKA Wall
Street hotel, which permanently closed during the pandemic, is being converted to 137 rental units. The building anticipates opening later this year;
• 33 Park Row: Urban Muse’s 25-story, 31-unit condo
There are eight properties totaling 2,360 units in the planning and development phase. During the first quarter, plans for two key residential projects were announced.
• 250 Water Street:The Howard Hughes Corporation
is planning a mixed-use development at 250 Water Street at the edge of the South Street Seaport Historic District. The current site has served as a parking lot for more than five decades, and will undergo comprehensive environmental remediation. The development will have approximately 200 condo units and 70 affordable rental apartments, along with commercial and retail in the base. The project will also provide financial stability for the South Street Seaport Museum, putting it in a position to reopen and plan for its expansion in a new museum building at John & South Streets. The proposal has been redesigned incorporating feedback and input from the Landmarks Preservation Commission, with a final vote pending on the final size and scope in May.
• Site 5 at the World Trade Center: A partnership
between Brookfield and Silverstein Properties received approval from the Port Authority and Lower Manhattan Development Corporation to develop Site 5 at the World Trade Center, also known as 130 Liberty Street. The site was originally home to the Deutsche Bank building that was damaged on 9/11 and demolished in 2007; it currently serves as a Port Authority police depot and temporary plaza. The 1.56 million sq. ft. tower will be 900 feet tall and have 1,325 rental apartments (330 will be affordable). Construction is anticipated to begin in 2023 and will last five years.
tower adjacent to City Hall Park. The corner building, which sits adjacent to The Beekman Hotel, anticipates completion and sales launch this spring;
• 185 Broadway: Developed by SL Green, the 31-story, mixed-use tower will have 41,000 sq. ft. of office space and nearly 10,000 sq. ft. of retail, as well as 209 rental units, including 63 affordable units. The property has a 35-year tax abatement under the state’s Affordable New York program. Construction is scheduled for completion in summer 2021.
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Lower Manhattan Residential Pipeline Source: Downtown Alliance
Address Condo + Rental Units Under Construction
130 Liberty Street Site 5 at the World Trade Center Rendering by DBOX. Courtesy of Silverstein Properties/ Kohn Pedersen Fox
Lease / Building Type
Units
Total
1,346
1
84 William Street
Rental Conversion
2
33 Park Row
3
185 Broadway
5
One Wall Street New Construction
6
161 Maiden Lane
7 9
137
2021
Condo New Construction
31
2021
Rental New Construction
209
2021
566
2022
Condo New Construction
80
2022
45 Park Place
Condo New Construction
50
2022
125 Greenwich Street
Condo New Construction
273
2022
Condo
Condo + Rental Units In Development
Total
1
45 Broad Street Condo
2
265 Broadway
3
250 Water Street
Rendering Courtesy of Howard Hughes/SOM
2,360 206
TBD
Hotel/Condo New Construction
37
TBD
75-83 Nassau Street
Rental New Construction
229
TBD
4
7 Platt Street
Rental New Construction
250
TBD
5
1 Park Row
Condo New Construction
19
TBD
6
69 West Broadway
Condo New Construction
24
TBD
7
250 Water Street
Condo/Rental New Construction
270
TBD
8
130 Liberty Street
Rental New Construction
1,325
2028
New Construction
TOTAL UNITS IN THE PIPELINE Lower Manhattan Real Estate Market Report | Q1 2021
Open Date
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Residential Sales And Rental Market According to residential statistics published by Miller Samuel/ Douglas Elliman, the median rent in Lower Manhattan was $3,000 in the first quarter, down 8.2% from the fourth quarter of 2020 and a staggering 22.5% decrease from the beginning of 2020. This was the sixth consecutive quarter during which median rents continued to fall and the lowest median rent in over a decade. Manhattan’s overall median rent trended down 15.7% year-over-year to $3,000, but remained flat compared to the last quarter. Lower Manhattan now is on par with median rents seen across Manhattan. Over the past five years, Lower Manhattan has seen much higher rents than the rest of Manhattan — typically between 8% and 10% higher. Renters responded enthusiastically to Lower Manhattan’s falling rents. New apartment leasing has increased steadily over the past couple quarters after rents fell to a 10-year low point. Relatively more affordable rents should be considered a positive note for Lower Manhattan, particularly as employers begin to return to work and new legions of young professionals start jobs in the City.
$3,000
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Median Residential Rental Price Source: Miller Samuel/Douglas Elliman
Median Residential Sales Price Source: Miller Samuel/Douglas Elliman
Median Residential Rent In Lower Manhattan — The Lowest In Over A Decade. On Par With Median Rent For All Of Manhattan. The sales market also woke up in the first quarter. The selling season was compressed during the pandemic with the busy spring sales period in 2020 being essentially halted. Old inventory has since cleared the market and buyer enthusiasm is higher. The median sales price for co-ops and condos fell to $1.481 million, down over 8% from the previous quarter. Lower Manhattan’s average price per sq. ft. was $1,648, down 6.4% from the previous quarter. Buyers responded to the decline in prices with sales volume nearly 171% higher than over the previous quarter.
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Residents Return To Lower Manhattan The Alliance partnered with Placer.ai, a technology company that analyzes location and foot traffic information by collecting anonymized geolocation and proximity data from mobile devices enabled to share such information. Using data from Placer.ai, the Alliance set out to measure the impact of COVID-19 on residential migration patterns in Lower Manhattan and comparable neighborhoods. Compared to a pre-pandemic January 2020 baseline, Lower Manhattan’s estimated residential population began to decline in March 2020 and reached its trough by June 2020 as many residents left temporarily to ride out the worst of the pandemic in second homes or with friends or family. Some of these residents have moved permanently out of the neighborhood. Placer’s data estimated that by June 2020, only 66% of Lower Manhattan’s population was still
living in the neighborhood. The daily residential population began to recover by the fall and currently Lower Manhattan has 85% of the population it had pre-pandemic. The residential recovery in early 2021 can also be evidenced anecdotally by how cheaper rents have driven leasing activity in Lower Manhattan apartment buildings. Other affluent Manhattan neighborhoods were impacted similarly as those residents also left last spring, however their recovery has been slower. The Upper East Side and Chelsea, for instance, are only showing recovery in the low 70% range. On the other hand, residential neighborhoods like Park Slope and downtown Jersey City are seeing residential recovery in the low to mid 90% range.
130 William Street
Lower Manhattan Real Estate Market Report | Q1 2021
Courtesy of Lightstone
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MAJOR PROJECTS UPDATE World Trade Center
Street Reconstruction
Ronald O. Perelman Performing Arts Center Construction on the Ronald O. Perelman Performing Arts Center (The Perelman Center) topped out. The approximately 110,000-sq.-ft. cube-shaped building will feature three theaters of varying sizes which can be combined in different seating configurations and formats for an array of unique performance environments. The project is anticipated to open in late 2022.
Reconstruction of Front Street between Old Slip and John Street began in January 2020 and is scheduled for completion in Summer 2022. Planning has begun on the reconstruction of Nassau Street between Pine Street and Maiden Lane; though a construction start date is still being determined, the City aims for a late 2023 completion. These projects will replace all underground infrastructure, including water mains, sewers, electric, gas and other utilities, as well as construct new streets and curbs.
St. Nicholas Greek Orthodox Church and National Shrine Construction of the Santiago Calatrava-designed St. Nicholas Greek Orthodox Church and National Shrine is nearing completion. The church, located atop Liberty Park, broke ground in 2014, but stalled in late 2017 after funding issues. The $80-million project anticipates completion in time for the 20th anniversary of the 9/11 attacks, with the first services expected to begin in early November 2021.
The City anticipates beginning work on the streetscape and public-realm enhancement project along the Water Street corridor in May 2021. The $22.8 million project will transform two temporary public plazas at Coenties Slip and Whitehall Street into permanent public spaces, featuring new landscaping, seating and concessions. The project will also plant street trees, rebuild sidewalks and enhance pedestrian safety from Whitehall Street to Old Slip.
Site 5 A partnership between Brookfield and Silverstein Properties received approval from the Port Authority and Lower Manhattan Development Corporation to develop Site 5 at the World Trade Center, also known as 130 Liberty Street. The site was originally home to the Deutsche Bank building that was damaged on 9/11 and demolished in 2007; it currently serves as a Port Authority police depot and temporary plaza. The 1.56 million sq. ft. tower will be 900 feet tall and have 1,325 rental apartments (330 will be affordable). Construction is anticipated to begin in 2023 and will last five years.
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Parks, Plazas and Streetscapes Evolve Around Lower Manhattan Elizabeth H. Berger Plaza Elizabeth H. Berger Plaza was unveiled to the public in early spring 2021. The $6.6-million project was first proposed in 2009, received approval in 2012 and began construction in September 2019. Named after the late Downtown Alliance president, the public space combines two existing, underutilized concrete plazas into a single, large plaza and green space. The 29,000-sq.-ft. park (pictured right) eliminated an extraneous twolane exit ramp for the Brooklyn Battery Tunnel and features a grass lawn, trees, landscaping, seating and paved pathways. Peck Slip Park Construction was completed on the $5.6 million Peck Slip Park in early January. The project was proposed in 2017 and began construction in January 2020. The former Seaport parking lot features new pavers, seating and a variety of trees and plantings. 240 Greenwich Street Construction was completed on Bogardus Plaza in late 2020. The roughly 10,000-sq.-ft. public plaza is located on Hudson Street between Reade and Chambers Streets. The plaza was originally a street which became closed for temporary plaza in 2010. Construction for the permanent plaza has been underway since 2017. The new $4 million permanent plaza features public seating, trees, an antique clock and sculptural elements that reference historical industries formerly based in nearby buildings.
Lower Manhattan Real Estate Market Report | Q1 2021
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Alliance for Downtown New York 120 Broadway, Suite 3340 New York, New York 10271 The mission of the Alliance for Downtown New York is to provide service, advocacy, research and information to advance Lower Manhattan as a global model of a 21st century central business district for businesses, residents and visitors. downtownny.com/business/research-statistics Lower Manhattan Real Estate Market Report | Q1 2021
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